During January 2017, Express Lane Company completed the following transactions. Beginning inventory as of January 1 include
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Question:
During January 2017, Express Lane Company completed the following transactions. Beginning inventory as of January 1 include 225 units $80 each which totals $18,000:
- Jan 1: Paid 12 months insurance in advance for $10,800.
- Jan 2: Purchased 400 units of inventory for 34,000$ from Great Company, on terms, 3/10, n/eom.
- Jan 4: Purchased 150 units of inventory from Deluxe Company on account with terms 2/5, n/30. Total invoice is $13,500 which includes also freight charges.
- Jan 5: Paid accrued salary of the December 2016, $16,000.
- Jan 13: Paid to Great Company.
- Jan 15: Sold 600 units of goods to Shine Company for $90,000 ($150 each) on account with terms 2/10, n/30.
- Jan 17: Received 50 units of goods back from Shine Company (Returned goods are from $80 of cost each).
- Jan 20: Received payment from Shine Company, settling the amount due in full.
- Jan 23: Sold 40 units on account, $6,000 ($150 each) for cash to Bridget Company.
- Jan 26: Owner withdrew cash of 18,000$
- Jan 27: Purchased supplies for cash of $7,000.
Requirements:
- Journalize January transactions.
- Prepare LIFO schedule to calculate the Cost of Goods Sold (COGS) on the Jan 15th, and 23th.
Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
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